1031 DST Investment Advisors | Washington D.C.
Washington D.C.

1031 DST Investment Advisors

 
Competent assistants for your next DST investment.
As a leading investment firm in Washington D.C., we are specialized in DST investment in conjunction with the benefit of the 1031 Exchange. Our advisors are fully licensed with award winning professional experiences. We are always on top of the ever-changing regulations and case developments in this field.

Unlike our competitors, 1031 DST Investment Advisors understand the struggles you face in choosing the right investment for your business goal. Solely based on your commercial needs, we offer a holistic approach to assist you in navigating through 1031 Exchanges and Delaware Statutory Trusts (DST). Crafting a personal plan to cater to your entire financial life and your retirement needs are our speciality. After serving our valuable clients in DC over the years, we have built numerous successful cases with many local DST investors and beyond.

    Quick Appointment

    Enter your contact detail here to help us serve you better & faster

    Washington D.C.

    Picking your next successful DST investment is easier than you think

     
    DST, a new rising star in the game.
    Delaware Statutory Trust Act (DSTA) was first passed in 1988. The Delaware Statutory Trust (DST) is based under Chapter 38, Part V, Title 12 of the Delaware Code. Contrary to most states which are still running common law trusts, Delaware is one of the few states in the United States that operates trust matters under comprehensive legislation. Several features of DST have won over many investors’ hearts.
    Delaware statutory trust

    Formation

     

    It is really simple and straightforward to create a DST. It must be an association established by a governing instrument. A governing instrument is absolutely vital for a DST, and it is the very reason why DST excels over the other investment tools. A DST governing instrument can be any written instrument with few limitations on its content. However, it may need to include some general requirements about beneficial owners or a trustee at least. Normally, a governing instrument is your trust agreement.

    delaware trust company.

    Limited Liability

     

    Since DST possesses a separate legal entity, it has its own legal capacity to carry on any lawful business, subject to the limitations stipulated in the trust agreement. Neither the trustee nor the beneficial owners are personally liable for the obligations borne out of the DST, as long as they act within their designated capacities. The beneficial owners can delineate such capacities in the trust agreement. It is important to remember that the trust agreement (also known as the governing instrument) serves as a mini-constitution for the trust.

     delaware statutory trust 1031

    Ownership

     

    For someone who is not financially hefty to acquire an upscale property solely on his own, DST provides an excellent choice for him to declare fractional ownership of it. DST offers a solution of fractional ownership to allow multiple investors to gain possession of properties. Such fractional ownership entitles the investors to receive monthly interest upon the profit generated from the properties. On the other hand, investors’ proceeds from the investment real estate sale do not have to invest fully in one DST property. It would be wise to distribute it across multiple DST properties.

    Washington D.C.

     
    The 1031 Exchange, a valuable asset for DST investment.
    The trust agreement can be structured by choice so that the DST would not be subject to United States federal income tax at the business organization level. On the other note, the benefit of choosing DST is usually maximized by coupling with the 1031 Exchange. 1031 Exchange is named after the Internal Revenue Code (IRC) Section 1031. It grants the permission of capital gains tax deferral for investors. In 2004, DSTs were approved for 1031 Exchanges. It allows investors to defer their capital gains tax and relocate their money to higher profit properties.
     dst invest

    Real property only

     

    The properties under the 1031 Exchange in the past included aircraft, automobiles, heavy equipment, and mineral rights. However, after December 31, 2017, only buying or selling real properties are qualified for the purpose of the 1031 Exchange. This alteration was manifested by the language assertion directly in the Internal Revenue Code. Such a change was considered substantial. But since the majority of the 1031 Exchange was already dominated by commercial and investment real estate, it did not impact the market very much in practice.

     dst investments

    Substantive qualifications of property

     

    Under 1031 Exchange, the properties have to be “the same nature or character, even if they differ in grade or quality.” For example, swapping a rental property with a gym space would be allowed. Properties that involve stocks, bonds, notes, securities, and interest in partnerships are excluded. Although it does not require the investor to be a US resident, both properties for the Exchange must be located in the United States. However, keep in mind that the Foreign Investment in Real Property Tax Act of 1980 (“FIRPTA”) will be applicable for a foreign investor. It can trump some benefits of using the 1031 Exchange. The investor’s proceeds from the sale of the original property might be partially taken by the tax obligations derived from FIRPTA.

    dst real estate

    Procedural qualifications of property

     

    Any property received by the taxpayer shall not be treated as like-kind property if such property is not identified as like-kind property within 45 days since the date in which the taxpayer transfers the property relinquished in the exchange. And the identified property is received outside the 180-day window starting on the date which the taxpayer transfers the property relinquished in the exchange. It means that the identified property or properties must be purchased within 180 days for the purpose of the 1031 Exchange.

    Thinking about what your next DST investment should be? Schedule a consultation with us now.
    Get in touch with us, and our advisors will provide a customized plan for your investment.
    real estate dst
    Proudly serving Washington D.C.

    Professional advice that you are looking for.

     
    Since the creation of the 1031 DST Investment Advisors, we have proved our capability and competence to deliver financial stability and prosperity to all our clients. Whether you are starting a career, beginning your family, switching your profession, sending children to college, or struggling through unexpected economic hardship, personalized services and bespoke solutions provided by our highly skilled experts are right at your doorstep and ready to expand your financial landscape. Safeguarding and maximizing your financial interest is our sole mission. Located in the center of Washington D.C., 1031 DST Investment Advisors have been widely recognized and respected in the industry. With years of experience, 1031 DST Investment Advisors is where you can place your trust and confidence.

    We recognize that every client is unique. Hence we do not believe in a streamlined template solution that can apply to all. We spend an extraordinary amount of time with every client to ensure your needs and problems are heard and addressed fully. Our wealth management formula addresses the top five concerns most important to affluent families: Investment Consulting, Wealth Enhancement, Wealth Transfer, Wealth Protection, and Charitable Giving. Our advisors are fully licensed and widely recognized in the fields they practice. They are ready to work tirelessly and offer a matchless strategic plan only for you.